Budget is ‘clear proof we are now financially stable’

NOTTINGHAM City Council is planning to end its reliance on emergency financial support measures a year sooner than expected.

- By JOE LOCKER Local democracy reporter

The Labour-led authority's former finance director declared it effectively bankrupt in November 2023, after it was decided a balanced budget could not be set due to a £23m overspend at the time.

However the council’s leadership now says its latest budget for 2026/27 = which begins April 1 next year - is “clear proof we are now a financially stable council”.

It is currently forecasting an underspend of £1m - which means it will have this amount left over once all expenditure in its day-to-day services is accounted for - and should be able to set the budget without the use of any emergency support measures.

Shortly after the “bankruptcy” announcement, Government commissioners were appointed in February 2024 to oversee a “critical improvement journey towards financial sustainability”

Around the same time, the Government further gave the council permission to use up to £65m in Exceptional Financial Support (EFS) to help balance its budget. This accounting mechanism allows councils to sell property and land and use the money made for day-to-day spending, something which is not typically allowed outside of exceptional circumstances.